Hedge funds have suffered their worst quarter in seven years after more than $15bn was pulled out by investors starting to fight back against the high fees being charged across the industry.

The total invested in hedge funds fell to $2.86tn in the first three months of the year, marking the first time since 2009 that the sector has suffered two consecutive quarters of net outflows.

Sharp market moves have wrongfooted many groups, leading to poor performances in the first quarter from funds such as Bill Ackman’s Pershing Square, and rankling investors already disgruntled over fee structures charging 2 per cent for management as well as 20 per cent of profits. A broad index of hedge fund performance fell 0.7 per cent in the first quarter, according to HFR data.